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Helping people get from where they are at to where they want to be...

Posts made in February 2019

Have you or a parent been keeping paperwork from years past and now you’re buried in it? Do you keep it? Do you throw it away? Should I be shredding? Paper or electronic files?…..

In the past it was thought that we needed to keep every document we came across, every receipt, bill copy with the check number or confirmation number written on it, pay stubs, and canceled checks/duplicate copies. Do I really need all of my old tax returns?

There are many things to consider when decluttering and sorting through all of your paperwork:

Think practical. Unless you are the CEO of a major corporation you will most likely not require a large filing system. A two-drawer filing cabinet or smaller should be sufficient. Sometimes bigger is not always better. Going with a bigger filing system can only encourage you to store “stuff” that you don’t need for your paperwork!

Be Safe. Get a small fireproof safe to store your most important documents (i.e. social security card, passport, estate planning documents, life insurance documents, safe deposit box info AND the key, birth/death certificates, marriage certificates, and divorce decrees). You never hope disaster could strike, but be prepared to save yourself from further distress.

Keeping it Together. Try to keep your paperwork in one central location. Don’t have stacks and folders throughout different parts of your home. Save yourself the trouble to searching all of your designated areas and keep in one room, one cabinet.

Paper is Preferred? If you prefer having hard copies of all of your paperwork, that’s okay! Take all of your paperwork and organize it. Use that large kitchen table to make your piles by sorting everything. Each pile should have its own designation (i.e. bank statements, receipts, retirement statements, medical reports, explanation of benefits statements, house financial, insurance). You can then tackle each stack – According to Consumerreports.org, you should keep these sort of items for one year or more. You can organize each stack by year if you really want to get super organized, keep each year in a file folder labeled with the year or just organized in the stack. You separate out your insurance documents (one file for homeowners, one file for auto, and one file for health).

Living in a Paperless World. A lot of people today are looking at scanning documents to save space and keep as much of their paperwork to a minimum. You can use a flatbed scanner or a small portable scanner. You can scan in your documents, but don’t forget to back them up! Sure you can always store your documents or back them up on an external hard drive, but keep in mind those items can crash too! So whether you choose to store on your computer’s hard drive, external hard drive, or a cloud based document storage service, do your homework and make sure you have the proper security measures in place to protect your identity.

Don’t Become a Statistic. Identity theft is no joke. It can happen to anyone. Always be cautious when sorting through documents that you no longer need to keep that you are not tossing away paperwork with any personal identifiers on them such as a social security number. This can lead to much heartache if your personal information gets into the wrong hands, so always be sure to look carefully at each document. It’s always good to be proactive in protecting your identity by purchasing identity theft protection such as LegalShield who will monitor any changes in your credit and help keep your identity from being stolen.

Hit the Shredder. Have you stumbled across a lot of documents that you no longer need, but you know they need destroyed? You can invest in a small paper shredder and there are few types to choose from so, do your homework when selecting one. If you don’t want to purchase a shredder, office supply stores will offer a service and charge based per pound to shred your documents for you.

Use your Best Judgment. Use your best judgment when determining how long you should keep documents. Remember everything today is electronic! Tax returns are probably the most important documents to have a good filing system on. The following information is from the IRS (www.irs.gov):

“Periods of Limitations that apply to income tax returns:

Keep records for 3 years if situations (4), (5), and (6) below do not apply to you.

Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return.

Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.

Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return.

Keep records indefinitely if you do not file a return.

Keep records indefinitely if you file a fraudulent return.

Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.

The following questions should be applied to each record as you decide whether to keep a document or throw it away.”

(Source: www.irs.gov)

You can always consult your local income tax preparer for more information and guidance or call your local IRS office.

So at the end of the day, don’t drown yourself in a pool of papers! Declutter your paper mess, organize what you are keeping, and give yourself peace of mind that when you or a loved one needs to find something it should be easier to locate!

Do you have a loved one who truly needs to downsize and struggles to let go? There are so many emotions people go through when they have to face downsizing household goods – sadness, anxiety, anger, frustration, and disgust.

Many people just don’t know how to decide whether to part with something. Here are some of the struggles of decluttering:

We bargain….reason with ourselves….make excuses and convince ourselves why we need it…

We feel a sense of comfort surrounded by our things, so the thought of getting rid of these things can make us feel a bit lonely or empty.

I “might” need that

I “want” to do ___________________ with that

Just not receptive to change

Here are some things to consider for people who go through those struggles:

Consider asking yourself “why” do I want to keep this item? Is because you “need” it or you “want” it? How long have you had it? When was the last time you used it? Oh…you haven’t used it (perhaps it’s still in the packaging) – so if you are still on the fence, consider giving yourself a deadline. I recommend the 1 year rule. If you keep it and haven’t used it within 1 year, then let it go!

So you think you “might” need it? Really dig deep into the why…WHY haven’t you used it? WHY is it still in the packaging? If you then find yourself wondering, HOW did this get lost? HOW could I have forgotten I had this? Bottom line – you probably haven’t used it because you haven’t needed it, otherwise you would’ve used it!

Do you have plans for your stuff? Reusing or repurposing? Give yourself a deadline. I recommend a 1 year rule. For example, I had a great idea to buy old crappy furniture and refinish it! Great idea – sure. However, I have all of that cool furniture sitting in a storage unit! I gave myself 1 year…my year is up in June – if I haven’t started any of it, I never will so I will be getting rid of it! This is part of what I call rainy day ways of thinking AND bird brained ideas! It’s okay to have a rainy day way of thinking and bird brained ideas, just give yourself a deadline!

Some people are simply just not receptive to change and here is my only bit of advice on that:

Change can be difficult….

Life is one big learning lesson…we can’t grow as human beings if we are not receptive to change. It’s okay to be comfortable in your surroundings – it’s your home, it’s your stuff, but most of all it’s YOUR decision.

YOUhold the power to make the decision to downsize – my only piece of advice to you is think about letting go of things that you no longer use, give yourself more room to live, give yourself piece of mind knowing that your children won’t be inundated going through your home, and take advantage of making these decisions while you can.

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"At DM Home Transitions, I am dedicated to providing homeowners with all the tools necessary to transition their lives successfully. Downsizing can be stressful and weight bearing ~ so let me take that weight off of your shoulders and help you get to the next phase of your life one step at a time."